IBM Completes POC of Blockchain-Based Shared KYC with Deutsche Bank,

HSBC, MUFG and Cargill, IBM Treasuries

Singapore, Singapore, November 15, 2017 --(PR.com)-- IBM (NYSE: IBM) announced the successful
completion of the Phase I proof-of-concept (POC) of its Shared Corporate Know Your Customer (KYC)
project with Deutsche Bank, HSBC, Mitsubishi UFJ Financial Group (MUFG) and the Treasuries of
Cargill, IBM. Through the Shared KYC POC, IBM successfully demonstrated how the Blockchain-based
IBM Shared KYC platform provides a secure, decentralized and efficient mechanism for banks to collect,
validate, store, share, and refresh trusted KYC information of corporate customers.

Through this collaboration, IBM has established client provisioned and consented sharing of KYC
information and securing documents with encryption. Network trust is established through digitally
verified documents on the Blockchain and the underlying consensus protocols. The overall objectives of
the Shared KYC project, of which the technology-focused POC was the first phase, are to:

Define harmonized standards for the collection and validation of certain core documents and information
agreeable to all bank participants;

Eliminate repetition of mundane documentary tasks through collaboration and privacy-preserving sharing
while shifting focus of human intervention to the higher-value tasks of risk evaluation and decision
making;

Create a sharing economy environment (where the whole is greater than the sum of the parts) that is an
inclusive ecosystem open to all banks, corporate customers, third party service providers, and regulators;

Digitize all corporate KYC information to preserve authenticity and accuracy, and provide greater
flexibility for query and analysis of the data; and

Increase transparency and trust through technology with up-to-date shared standards improving collective
knowledge of AML risk and double-blind privacy model ensuring client confidentiality.

Blockchain provides a safe, secure, and scalable infrastructure to support the sharing of common KYC
information providing benefits to all network participants - banks, corporates, service providers and
regulators. This initiative aligns with the Monetary Authority of Singapore's vision to drive innovation in
modernizing Singapore's Finance Infrastructure, and at the same time, enhances transparency into KYC
processes performed by Banks. Banks will be able to use such a platform to enhance the customer
experience, automate mandatory processes and eliminate duplication through harmonizing and sharing
KYC information resulting in operational savings and, over time, reduced operational risk. The corporates
also benefit from reduced paperwork by doing KYC once and sharing it with relevant financial
institutions through a user-controlled consent model.

The governance of the shared KYC network will include regular certification of contributing banks to
assess their compliance with the harmonized standards and provide transparency and confidence to the

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wider group of participating banks.

With the fast-paced growth of Banking and Finance in Singapore, the current process, which is manual,
repetitive, inefficient and expensive, will not be able to keep up. Shared KYC aims to harmonize
standards across banks with a focus on digitization of documentation, and multiple levels of information
validation and augmentation, ensuring security and privacy for the platform participants.

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Contact Information:
IBM
Charlene Lee
+65 97916485
Contact via Email
ibm.com

Online Version of Press Release:

You can read the online version of this press release at: https://www.pr.com/press-release/736270

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